Revenue from operations rose 41% year-on-year to Rs 537 crore in the second quarter of FY27. Net transaction value (NTV) grew 39% YoY to Rs 1,432 crore, while orders delivered increased 103% YoY to 15.1 million. Annual transacting users rose 35% to nearly 10 million.
The company’s consolidated adjusted EBITDA loss stood at Rs 144 crore, reflecting an investment of Rs 174 crore in InstaHelp. Excluding InstaHelp, adjusted EBITDA increased 213% YoY to Rs 30 crore.
The company’s board has approved a fresh capital raise of up to Rs 2,500 crore, subject to shareholder approval, to provide financial flexibility for investments across its businesses, strengthen its position in InstaHelp and pursue selective acquisitions. Urban Company had cash and treasury investments of Rs 1,901 crore at the end of the quarter.
The company said its consolidated NTV had grown around 40% YoY for three consecutive quarters, supported by new user acquisition, repeat usage and expansion into newer markets. New user acquisition increased 46% YoY over this period.
Penetration in the largest service categories across the top eight cities remains below 10%, while Tier 2 cities recorded NTV growth of around 37% YoY. Its international business grew 66% YoY, while its Native products business is preparing for the festive season in the December quarter.
Core business improves margins
India Consumer Services, excluding InstaHelp, reported NTV growth of 26.3% YoY to Rs 963 crore. Adjusted EBITDA stood at Rs 34 crore, equivalent to 3.5% of NTV, compared with 2.4% a year earlier, marking an improvement of 110 basis points.
Annual transacting users in the segment grew 22.4% YoY to around 8.6 million. First-time users increased around 28% to 0.76 million, while NTV per annual transacting user rose 3.2%.
Average monthly net earnings for active service professionals reached Rs 30,708 in the first half of FY27, up around 10% from Rs 27,950 in the year-earlier period. The figure includes around 97 hours of work a month, including transit time.
International business expands
NTV in the international business rose 66% YoY to Rs 267 crore, while revenue increased 82% to Rs 75 crore. In constant currency terms, growth stood at 52% for NTV and 66% for revenue.
The company said its UAE business had recovered from disruptions caused by the conflict earlier in the year. International adjusted EBITDA margin improved 190 basis points YoY to 2% of NTV, with the UAE and Singapore businesses continuing to deliver profitable growth.
In Saudi Arabia, its joint venture Yammak, with SMASCO, recorded NTV growth of 153% YoY to Rs 93 crore. Its adjusted EBITDA loss narrowed to Rs 16 crore from Rs 20 crore a year earlier.
Native business targets festive demand
The Native business reported NTV growth of 35% YoY to Rs 132 crore, while revenue increased 40% to Rs 105 crore. Its adjusted EBITDA loss margin narrowed to 6.8% of NTV from 9% a year earlier, an improvement of 220 basis points.
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The company said the launch of its RO Water Purifier M3 Pro helped drive a 4.3% quarter-on-quarter increase in average selling prices for its water purifiers, while filter attachment rates remained around 75%.
With festive e-commerce sales shifting to the December quarter, Urban Company expects combined Q2 and Q3 FY27 NTV growth of 50-55% YoY. The board has also given in-principle approval to explore residential air conditioners as a new category under Native.
InstaHelp investment weighs on profitability
InstaHelp, the company’s quick home services business, fulfilled 6.2 million orders during the quarter, up 63% sequentially. NTV increased 34% quarter-on-quarter to Rs 71 crore.
However, net order value declined to Rs 114 from Rs 138, reflecting competitive intensity and introductory pricing for new users.
Adjusted EBITDA loss per order improved to Rs 279 from Rs 346 in the June quarter, driven by higher network density. The business reported an adjusted EBITDA loss of Rs 174 crore during the quarter, as the company invested in customer acquisition, supply expansion ahead of festive demand and entry into new micro-markets.
Urban Company said it remains on track to achieve adjusted EBITDA breakeven by the third quarter of FY28 and adjusted EBITDA of Rs 1,000 crore by FY31.
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